The U.S. Federal Trade Commission (FTC) has announced a new "Junk Fees Rule" requiring hotels and casino resorts to include resort fees in their advertised room rates. The rule takes effect within 120 days and aims to eliminate deceptive pricing practices in the lodging industry.

Resort fees, which can reach $55 per night at luxury Las Vegas properties like Bellagio and Mandalay Bay, have historically been excluded from advertised rates. These mandatory charges, introduced in the 1970s for amenities like fitness centers and newspapers, have evolved into what critics call a deceptive pricing tactic.

FTC Chair Lina Khan emphasized that consumers deserve transparent pricing without hidden charges. The commission reviewed over 70,000 public comments before finalizing the rule, which doesn't ban resort fees but requires their inclusion in upfront pricing.

The impact on budget-conscious travelers has been significant. For example, a $25 per night room at Luxor currently advertised on third-party sites can actually cost $72.34 per night after adding the mandatory $45 resort fee – nearly triple the displayed rate.

The new regulation, part of President Biden's consumer protection initiatives, applies to all hotels and aims to save Americans billions of dollars while eliminating surprise charges during check-in. Hotels must now present all unavoidable charges, excluding taxes, in their initial advertised rates.

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